Stock Preacher

The USD continued falling against major currencies on Thursday amid better-than-expected employment data and rising US stocks. US Initial Jobless claims fell to 550,000 last week from 576,000 in the previous week, the Labor Department reported on Thursday. Analysts have expected the claims would fall to 560,000. Total continuing claims fell to 6.088 million, their lowest level since April. US trade deficit jumped 16.3 percent in July, according to the Commerce Department. Imports surged 4.7 percent, mainly due to sharp increases in crude oil and automotive products. Exports rose by 2.2 percent, the third consecutive month of solid gains in exports, corroborating other evidence that the global economy is picking up steam. The increase in the trade deficit should be viewed as a positive development, said analysts of Global Insight. Read more

Popularity: unranked [?]

In China the Government owns the Banks; the bankers do not own the Government. China’s stimulus plan is working better than in the US and the UK because the government is using the banks for public ends, rather than allowing the banks to use the government for private ends. In the USA, the banks are the most powerful lobby on Capitol Hill; they own the Government.

The USA is spending trillions of greenbacks to bail out its banking system, leaving its economy to languish, as China, now called a “miracle economy,” decoupled from the rest of the world, is maintaining a phenomenal 8% annual growth rate. That, by the way, is being questioned by lots of Pols, commentators, economists and other talking heads, as they ask how that growth is possible, when other countries relying heavily on exports have suffered major downturns and remain in the doldrums. Read more

Popularity: 1% [?]

There’s no denying the strength of the Chinese economy now. Last week, it was announced that the size of the Chinese economy has now surpassed one of the biggest economies in the world; Germany.
After China’s revised GDP numbers were released, it became official that China has overtaken Germany as the world’s 3rd largest economy.

For 2007, China’s nominal GDP rate registered 13%, while its GDP totaled 25.73T Yuan. On the other hand, Germany’s 2007 GDP was only $$3.32T.

This is another example of how China’s economic growth is outpacing most countries during these tough economic times.

Countries like Germany have taken a huge hit in the current financial and economic environment. In fact, the weakening demand for Germany’s exports (it’s one of the largest exporters in the world) continues to weigh heavily on the German economy, and that’s a trend I expect to continue throughout 2009.

There are only two economies standing in China’s way from becoming the world’s largest economy, they are the USA and Japan. Do not be surprised to see China charge pas Japan in the next three to four years as Japan is burdened with a deep recession due to its aging population and lack of jobs for younger Japanese workers.

Further, expect to see Germany and Japan’s economies remain soft and slugish in the coming months and years.

China’s economic strength and size are solid reasons why investors are continuing to focus on China now.

Popularity: 6% [?]